Shares for Shoe Carnival Inc. are enjoying a bump in after-hours trading after the firm posted first-quarter profits that beat forecasts and also raised its outlook for the remainder of the year.
As of 4:35 p.m. ET, shares were up nearly 3 percent to $26.34.
The family-footwear retailer said its profits during the period, ended May 5, advanced 60 percent year over year to $13 million, or 83 cents per share. Market watchers had forecast profits of 71 cents per diluted share.
Meanwhile, revenues for the period edged up 1.6 percent to $257.4 million, but missed analysts’ bets for revenues of $262 million. Comparable sales improved 1.3 percent during the quarter, thanks to a strong response to the firm’s athletic and athleisure offerings — particularly as weather became warmer across the country, according to president and CEO Cliff Sifford.
He noted that sales results — along with a “favorable” inventory position and expense management — helped the company generate a 31 percent increase in operating income during the period. (Inventory was down 1.6 percent on a per store basis; operating income during the period hit $17.3 million.)
Based on the results, Shoe Carnival’s chief said the company was raising both the low and high end of its diluted earnings per share guidance for fiscal year 2018.
The firm now expects earnings per diluted share in the range of $1.90 to $2.05, compared with the prior range of $1.85 to $2.00. (Fiscal 2017 earnings per diluted share were $1.15 and adjusted earnings per diluted share were $1.49.) Net sales are forecast in the range of $1.013 billion to $1.020 billion, with comparable store sales up low single digits.